Establishing a cosmopolitan ethical culture for a multinational company requires special effort above and beyond that needed for standard domestic ethics initiatives. This articles discusses some of the perils and prospects involved in international corporate ethics programs, and recommends some key guiding principles.

This article challenges an argument from Tom Donaldson''s recent bookThe Ethics of International Business with a claim that distributive justice, deemed in many circles to impose a duty of mutual aid on individuals and nations, establishes a basis for holding multinational corporations to such a duty as well. The root idea I advocate is that Rawls'' theory of justice can be deployed — beyond its original intent yet in line with its spirit — to underwrite aprima facie obligation of international (...) business to render aid to ameliorate suffering on behalf of the inhabitants of developing countries in which they operate. (shrink)

As transnational interactions increase, cross-cultural conflict concerning ethical issues is inevitable. This article presents a model for assisting decision makers in selecting appropriate strategies for addressing cross-cultural ethical conflict. A theoretical framework for the model is developed based on the literature on international business ethics and on conflict resolution. The model is illustrated through several case examples. Implications for future research and practice are discussed.

Global ethics has recently emerged as a popular concept among researchers in the field of international management and is of immediate concern among managers of multinational enterprizes (MNEs). This paper presents an integrative framework covering a range of factors and issues relevant to multinationals with respect to ethical decision making. The paper provides an overview of the existing literature on the topic, and framework is aimed at providing the managers of multinationals with a basis for relating and synthesizing the perspectives (...) and prescriptions that are available for incorporating ethics into the strategic decision-making process. (shrink)

Transnationals operate in what may be called the margins of morality because the historical, cultural, and governmental mores of the world''s nation-states are not uniform. There is a gray area of ethical judgment where the standards of the transnational''s home country differ substantially from those of the host country. Following the argument of institutional theory in providing stability and meaning to social behavior, in matters of moral conduct the transnational is likely to yield to at least four policing authorities: itself, (...) in terms of the integrity of its management and by decision-making that follows its own code of ethics, other corporations within its competitive set, governmental agencies including those of the host country, and public exposure, which includes the media as well as non-governmental agencies such as offshore watchdog groups. The fourth mechanism, public exposure, is thought to be the most effective in policing transnational conduct. (shrink)

Most of the features of modern Russian business are transient, determined by the transitional character of the Russian economy and drastic changes in the social structure, ideology, and consciousness of Russian society in general. There are three main normative experiences in the traditions of Russian business: a) the experience of pre-Revolutionary business, specifically developed and practiced by the merchants of the old-believers extraction; b) the experience of socialist economy, which was more or less oriented to the public good and presupposed (...) selfless aspirations by the economic agents; c) the experience of legally and administratively constrained private business and illegal shadow business, which expected businessmen to be vigorous, industrious and enterprising. The process of privatization was developed under the aegis of state, specifically the state bureaucracy. The influence of changes in the social-economic system has been ambivalent for social morals. However, the reforms could stimulate their improvement. The recent development in the cultural environment of business testify to the emerging space of civilized business, which manifests that it is practically useful for businessmen to be ethical. (shrink)

Extant business ethics literature available for application to international business demonstrates some variety but no comprehensive principles. While the domains of both international business and business ethics are expanding, they are also becoming increasingly divergent. At the same time, the primacy accorded to the multinational enterprise in both fields ignores the socio-cultural and political embeddedness of economic activities, and multiple agencies in international business (individuals, firms, nations, etc.). Some international business theorists have offered the view that international exchange should be (...) the central building block for theories on international business. In this paper, it is argued that international exchange could be the fundamental unit of analysis for international business ethics as well. The potentially unifying features of exchange norms and ethical principles leads the author to develop some core exchange ethics principles that are tested on three recent international business practices. (shrink)

Cross cultural ethical conflicts are a major challenge for managers of multinational corporations (MNEs) when an MNE''s business practices and a host country''s practices differ. We develop a set of decision principles to help MNE managers deal with these conflicts and illustrate with examples of ethical conflicts faced by MNEs doing business in contemporary Russia (DeGeorge, 1994). We discuss the generalizability of the principles by comparing them to the Donaldson (1989) and Buller and Kohls (1997) decision models. Finally we discuss (...) changes in the cross cultural ethical problems facing MNE managers and offer suggestions for future corporate and academic work on these problems. (shrink)